, and that storekeeper in a short time--three or
four years probably--will have absorbed all he had earned
under the management of a planter.

Q. About that store system; how extensive is it, and how
great an evil does it constitute?
--A. It constitutes a very considerable evil, but you
cannot blame the storekeeper for it, for this reason, or he
can only be blamed partially: Capital in that country is
very limited. When you consider the fact that New Orleans,
which handles the cotton crop of that country, has a smaller
banking capital than any one of your little towns in
Massachusetts or New Hampshire, it shows at once that there
is not enough capital to be advanced to the country people
at reasonable enough rates of interest for those people to
conduct a strictly legitimate business. I have known capital
to cost in New Orleans, counting the commissions, 15 or 20
per cent, for money loaned. The storekeeper who borrows
money to conduct his business with has to buy his goods from
some merchant at some point who must make his profit. He
cannot go directly to the producer, because he has got to
have somebody to help him out if his capital falls short.
Therefore, before the goods get down to him, they cost him
perhaps 30, 40, or 50 percent more than the first price.
Therefore he has to tack on an enormous profit to bring
himself out whole and pay his expenses in order to meet his
obligations with the factor in New Orleans. There is,
however, among a certain class, as there would be in all
sections of the country, as exists right here in New York,
or anywhere else, a set of people who will always prey upon
ignorance. The best protection that can be afforded to the
laborer of that country is education; fit him for his
condition of life, that he may protect himself.

Q. Do you mean to be understood that these traders do
business upon borrowed capital?
--A. Almost entirely.

Q. Their capital is hired in New Orleans?
--A. Or any points they may go for it; I merely mention New
Orleans as one point. A number of our people borrow money in
Memphis, and some borrow money in Vicksburg.

Q. Do you know whether those people to any extent borrow
capital of Northern capitalists in New York and other
portions of the North
--A